A bill to provide homeownership assistance for lower income families.

Amends the United States Housing Act to authorize: (1) new use of existing housing funds to assist lower income homeowners to afford and finance the rehabilitation of their homes in locally designated rehabilitation neighborhoods; and (2) a new use of such funds to assist lower income families to purchase homes.

Authorizes the Secretary of Housing and Urban Development to make available not less than $50,000,000 for contracts for annual contributions for homeowners assistance payments.

Requires the Secretary to provide homeowner counseling and monitoring concerning the extent of repair, renovation, or rehabilitation activities and the eligibility of contractors to conduct such activities.

Sets forth the amount of such housing assistance payments under such contracts, and the criteria for the lending institutions.

Authorizes the Secretary to prescribe regulations to assure the costs of eligible repair, renovation, or rehabilitative activities do not exceed the costs to bring the unit into conformity with local housing codes or other appropriate standards.

Sets forth the guidelines for determining assistance to low-income families able to purchase a dwelling with such payments.

Provides for the recapture of all or a portion of such assistance rendered upon the disposition or nonoccupancy of the property by the family.

Prohibits the amount of assistance rendered to any borrower from being considered as income or resources for any purpose under Federal or State laws.